asked the Minister for Agriculture and Fisheries if he will give an assurance that there will be no distortion of trade to the detriment of Irish farmers on meat exports to the EEC arising from the operation of the British variable premium.
Ceisteanna—Questions. Oral Answers. - Meat Export Trade.
4.
The present United Kingdom variable premium arrangements are authorised up to 29th February next only and it is not possible to say at this stage what premium arrangements will apply in the 1976-77 marketing year. I can assure the Deputy, however, that I am very conscious of the possible risks of trade distortion that are inherent in the United Kingdom and other premium systems and I shall be keeping these fully in mind during the price-fixing discussions in the Council of Ministers in the coming months.
Would the Minister not agree that the main reason for the stability of the cattle trade in Ireland at present is the very existence of the British variable premium? Since the variable premia are payable on exports of meat from the United Kingdom to the mainland of Europe would he also not agree that they would militate against exports of Irish lamb to France because of the domestic support given in the United Kingdom to the production of lamb? Ideally, would it not be best for the Minister to seek a continuation of the application of the variable premium to Ireland on the same terms as the United Kingdom, including exports to France and the EEC generally?
It is not easy to pick one's steps as selectively as this when these decisions are being arrived at. It suits us to have this variable premium as far as our exports to the United Kingdom are concerned. Some distortion can occur when they have an extra subsidy over and above what we have when exporting to the Continent. At the same time, we have to agree that our exports to the Continent have been very satisfactory for some months past.
Will the Minister not agree that our sheep meat exports to the Continent during the past 12 months have been completely upset by the fact the British exported more than four times as much lamb to the French market as we did? All that 20,000 tons of British lamb which was put on the French market was supported by the variable premium. Would the Minister not agree that the British Government were only allowed by the Commission to maintain the variable premium on condition that it applied to trade between Britain and Ireland? Is it not logical that it be extended fully to Irish as well as UK exports?
In the case of lamb, there is no common organisation of the market and the British are free to do more or less what they like in that area. There is not an awful lot we can do about it because it does not come into price-fixing arrangements the same as beef. We are trying to iron out the lamb problem, regrettably with not a lot of success.
May I say in the matter of the Minister's request for a common organisation of the sheepmeat policy that he would be ill-advised to look for a bilateral arrangement between the French and Ireland or between the British and Irish? It would be better if he would devote all his energies to the finding of a common organisation of the market such as has been recommended——
The Deputy is aware that there is very little interest, apart from that of Ireland, in a common organisation of that market and any member State can veto any proposals we put forward. Therefore, we have to depend on goodwill and neither the French nor the British are interested in a common organisation of the market. The French used to be but that outlook has now changed. My reason for trying very hard for a bilateral arrangement with the French is that I see little prospect of getting a satisfactory common organisation of the market except as part of a price packet that we might have to pay too much for.
Can I recommend to the Minister that he pursues a minimum import price by the members of the Nine on third country imports of sheepmeat, with particular reference to New Zealand supplies?
We have raised this possibility on a number of occasions.